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A U.S. District Court in Texas ruled for plaintiffs who challenged the Department of Labor’s 2016, rule. The Justice Department, which defended the rule, formally ended its attempt to impose the rule.
Why this is Important: ReMA members that were caught off guard by the rule can relax a little now that that the court said the Obama administration overstepped its authority by making these increases without reviewing the job duties. The rule could have swept in some management workers who are supposed to be exempt from overtime protections.
Be Aware: Businesses should be alert for revised changes coming down the pike as the judge said that the Labor Department does have the ability to use a salary test, but must base eligibility for overtime pay on a combination of workers’ duties and wages.
Contact Danielle Waterfield with questions, or for more information.